[Combwork]

The problem with "let them fall" is not the percentage of workers put out of a job, it's the cluster effect. When a major car maker does down, it pulls all it's local specialist suppliers down with it. This has happened (albeight on a smaller scale) in the U.K. You get unemployment black spots where the percentage out of work is way above the national average. I don't know how your country deals with large scale unemployment in a relatively small area, but if it involves paying government money to people on zero income, how does this compare with the amount of cash the government would be using to keep the industry going? At the moment, even with heavy discounting your car manufacturers are producing more cars than they can sell, but if low emmision high mpg really is the future, and you've shut down the people who are tooled up to make them, you're going to be importing the damn things and watching your trade balance go down the pan.